Jamkhed Merchants Co-operative Bank Ltd

RBI extended Section 35A restrictions on Jamkhed Merchants Co-operative Bank Ltd., Jamkhed, Ahmednagar. The bank remains allowed to operate only subject to tight limits, including a ₹1,000 withdrawal cap per depositor account.

The bank continues operations only under RBI-imposed restrictions. Depositors can withdraw only up to ₹1,000 per account subject to conditions, and the bank cannot expand lending, raise fresh deposits, incur new liabilities, or dispose of assets without prior RBI approval. The restriction affects the bank’s customers and counterparties until RBI modifies the directions.

• Section 35A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949

RBI imposed a Rs. 5 lakh penalty on Jamkhed Merchants Co-operative Bank Ltd., Jamkhed, Dist. Ahmednagar. The action was for violating directives on loans to directors/related parties and credit exposure limits.

The bank must absorb the penalty and address the compliance lapses identified by RBI, particularly around related-party lending and borrower exposure limits. There is no stated restriction on operations in this release, but the findings signal heightened supervisory scrutiny over lending governance and credit concentration practices.

• Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949